Thousands of people lined the shores of Sydney Harbour to watch a fireworks spectacular on Saturday night marking 100 years since the Royal Australian Navy fleet first entered the harbour.

It was the biggest display since the city hosted the Olympic Games, with fireworks launched from city rooftops, the Harbour Bridge and the decks of warships, along with light projections, narration and music.

The Sydney Opera House came alive with Navy imagery and history projected onto its sails, along with the message: "We salute you".

Sailors watched on from the decks of warships and an estimated 1 million people witnessed the spectacular from parks, wharves and balconies.